Consumer Willingness To Pay For Animals Welfare Products

Resumen

The number of companies and products that use ethical labels to communicate transparency in the production chain and promote "friendly behavior" consumption towards sustainability has been growing. It is particularly true in the Brazilian food and beverages segment, where, in 2016, 46% of all food and drinks sold had at least one ethical label. Therefore, this study examines the influence of demographic characteristics and income on consumers' willingness to pay for animal welfare products in the food market. The survey drew a sample of 200 questionnaires from social networks of home management groups asking questions on food consumer behavior, family characteristics, and individual's economic profile. The response measurement for the dependent variable was on a 0 to 5 Likert scale, representing the family's willingness to pay for animal welfare products. The empirical strategy used a multinomial-ordered logit to estimate the consumer behavior model. Results suggested that the willingness to pay for animal welfare food products decreases with income for lower income levels but increases for higher income groups. Furthermore, as age and education increase, people are more likely to pay an extra price for animal welfare food products. Finally, the study showed that an individual's gender exerts no statical influence on the dependent variable.